The average U.S. gasoline price dropped on Tuesday to below $4 per gallon for the first time since early March this year, as supply has risen and concerns about the economy have grown, data from fuel-savings app GasBuddy showed today.
The national average is now back down to $3.99 per gallon for the first time since early March. Gasoline prices have been declining over the past few weeks, and the national average is now $1 a gallon cheaper than it was at its peak at $5.03 on June 14, GasBuddy noted. Falling international crude oil prices have been the main reason for the lower gasoline prices over the past weeks.
Americans today will spend nearly $400 million less on gasoline than they did in mid-June, according to GasBuddy's estimates.
Before oil prices started to drop in the latter half of June—due to fears of recession, concerns about oil demand, and snap Chinese lockdowns—gasoline prices in some areas in California were approaching the $7 a gallon mark, GasBuddy said.
But since mid-June, the national average prices have dropped for 55 consecutive days until reaching $3.99 per gallon on Tuesday.
"We've never seen anything like 2022 at the pump, highlighted by once-in-a-lifetime events including the ongoing Covid-19 pandemic, which caused myriad imbalances, exacerbated by Russia's war on Ukraine. As a result, we've seen gas prices behave in ways never witnessed before, jumping from $3 to $5 and now back to $3.99," said Patrick De Haan, head of petroleum analysis for GasBuddy.
"While the recent drop in gas prices has been most welcomed, the issues that led to skyrocketing prices aren't completely put to bed, and still could lead prices to eventually climb back up, should something unexpected develop," De Haan added.
High gasoline prices have been a nightmare for the Biden Administration this summer. President Joe Biden is taking the credit for falling gasoline prices, saying last week in his most recent tweet on the matter that "Right now, a family in America with two cars is saving $100 a month on gas compared to peak prices. That's breathing room. And we're not letting up any time soon."
By Tsvetana Paraskova for Oilprice.com
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